social capital, social innovation, and networks approach in territorial...

Social capital, social innovation, and networks approach in

territorial development

• 2ND INTERNATIONAL WORKSHOP OFRUR@L INOV PROJECT

• RUR@L INOV INNOVATION IN RURAL AREAS• LISBON, 23 May 2013

Dr Javier ESPARCIA

[email protected]

mailto:[email protected]

CONTENTS

1. Key dimensions of innovations in rural areas

2. Social innovation: instrument of change and innovation

3. Social dimension of innovation and social capital

4. Innovation logics & local development in differentcontext types

5. Social capital and social networks: experiences fromSNA in rural Spain

6. Concluding remarks: toward a key message

CONTEXT SUPPORT SYSTEMSTERRITORIAL

EMBEDDEDDNESSSOCIAL CAPITALNETWORKS

Key dimensions of innovations in rural areas




Contextual factors: Migration and mobility of population Urban – rural relations & urban markets Consumers’ life styles ITC technologies

Key characteristics: Available human capital Specificities of rural economy Natural resources and values Geographical accessibility Geographical & socioeconomic characteristics

Specific factors: Infrastructures & public facilities Political commitment Organizational & social aspects Presence and –active- role of local actors and SMES



Direct aspects Putting actors together for daily cooperation is crucial for innovations Individual interest may condition willingness, cooperative (networks) and

learn behavior Organizational solutions and effective networks are needed to introduce,

adapt or develop innovations

Other important related aspects Norms, values and experiences may also condition global attitudes facing

innovation processes Social skills are needed to communicate and work in networks Willingness to learn and skills to support –new- scientific knowledge & detect

tacit and local knowledge to be valorized Innovations are not just technological, economic, organizational or social:

innovations tend to share several of these dimensions, and each of them contribute to the others (ex. social innovations facilitate technological ones)





TYPES OF SOCIAL CAPITAL(World Bank)

Bonding(Horizontal - Intra)

[Putnam, 2003]

Linking(Vertical – Inter)

(institucional- hierarch. links) [Woolcock, 2001]

Bridging(Horizontal / Vertical –

External-inter)[Granovetter, 1976]

COHESIONTrust and reciprocity in close networks: “daily

performing”. First steps: STRONG LINKS (Granovetter, 1973)

BRIDGESPotential resource

If strong links: access to resources and opportunitiesin different networks …

Positive social externalities / Trend to a less trust and cooperation than with bonding SC First steps: WEAK

LINKS-BRIDGES (Granovetter, 1973)

-HIERARCHICAL- LINKSSocial relations with external actors (in high

hierarchical position) / Institutional relations tocatch power-prestige resources / hierarchical and

clientelistic relationships) First steps: WEAK/STRONG LINKS (Granovetter, 1973)

BONDINGDevelopment of local

structures LINKINGHierarchical links with

institutional actors

BRIDGINGRelationships with other

areas (or groups)

EXAMPLE OF THREE TYPES SOCIAL CAPITAL IN RURAL DEVELOPMENT



Social capital is a central elements of innovation, with key functions: fostering social activity

fostering networks of entrepreneurs and enabling –potential- innovators be together

improving access to information and knowledge (as –potential- innovators tend to use social networks –relations- to access to external resources -knowledge networks-, compensating their handicaps of knowledge, bringing new competences, advise, etc.)

As strong and effective are social networks –and ties between actors- more effective tend to be the access to resources

Some key elements of social capital, as associational activity (networks), is one of the strongest and most efficient driving forces for innovations.

Bonding social capital (social cohesion) increases trust among entrepreneurs and –potential- innovators.

Bridging social capital (links with other actors / territories) helps to diversify the networks, open it to new knowledge and actors, involve them in policy networks, accessing to support, etc.




Knowledge: an effective combination – integration (tacit- scientific, formal-informal, local-global, traditional-modern, etc.) contribution to successful innovation processes

Learning: crucial and tends to evolve in the different stages of the innovation (first ideas, project, initiation, development, consolidation, etc.)

Each stage requires specific knowledge, learning and competences(visioning skills for the ideas and project, technical, economic and social competences for the initiation and development, organizational and, in case, political, competences for development and consolidation, etc.)




Trust (personal, social, institutional): key component of social capital May be generated by small networks, but could be extended into wider networks bridges

for entrepreneurs and -potential- innovators who could afford other close actors (breaking barriers) and/or useful or needed resources for the innovation process

Contribute to foster coalitions, partnerships, cooperation, etc. decisively influence for success in innovations processes

Decisive role in both public and private sectors (functioning and innovation).

Public sector: pubic goods innovations (environment, education, public care, social services and welfare sector, etc.)

Private sector: cooperation strategies (networks, business clusters, professional associations, product chains, etc.), needed for better compete.

Main component of a global common sense of belonging, common set of values and goalsfor the community, and key element for a common understanding and goal towards sustainable development of rural communities

Negative effects of social capital: Blocking innovations highly stable bonding social capital (internal cohesion), limited to group or territory, with no changesand any bridges with other sectors or territories, or any links with external –hierarchical- actors (ej. policy-makers)




Three important types of embeddedness Social (traditions and social –local- networks) Territorial (sense of belonging to a place / village) Ecological (natural values and “natural” production base)

Successful innovations: highly depend on the embddedness of new ideas, knowledge and learning in the social, territorial and ecological local contexts As much as rooted are new ideas, knowledge and learning -potential innovations- in social, territorial, ecological local contexts, higher probabilities to become in successful innovations.

Territorial embeddedness territorial governance as integrating factor on a territorial basis (resources and social, human, economic, natural, cultural and symbolic capital)

Territorial governance (organizational and political arrangements, public-private cooperation, etc.): helps connecting innovation processes with territorial contexts Innovations tend to be more successful if they are based on local resources, strong local-regional networks and in line with regional economic base and planning objectives




Territorial governance: helps to break barriers (cognitive, psychological and sectoral), to establish regional partnerships, stimulate actor cooperation, etc. more effective bases for innovations

Specific structure-s for governance in the innovation sector could be crucial: mediating institutions at regional level (as open territorial platforms)

coordinating innovation networks

facilitating flows of knowledge, learning and capacity building for the local actors

fostering relationships between entrepreneurs, –potential or real- innovators and institutions and/or organizations offering professional support and advice in different parts of innovation processes (ex. technological centres offering professional advice)

From structures of governance: actors should foster territorial innovation strategies and integrate them with territorial developmentstrategies


CONTEXT SUPPORT SYSTEMSTERRITORIAL EMBEDDEDDNESS

SOCIAL CAPITALNETWORKS

Diversity of support strategies and frameworks: foster innovations at different stages and from different ways

Socio economic actors’ system and end user actor’s system: involved in all stages Public decision actors’ system and Information and knowledge actors’ system: formal and informal

links, tools, policy instruments, delivery measures, etc.

Social and organizational aspects of innovation: should be considered in support systems (avoiding just an economic and technical perspective). Ex. central aspects fostering and developing innovations in rural services:

networking, communication and open attitude/innovative mind (social aspects) multidisciplinary approach, coordination (organizational aspects)

Cooperation within and through support systems (actors, sectors, institutions with territorial bases) helps to overcome sectoral and territorial barriers

From social and organizational perspective, some specific support measures and skills are very important for entrepreneurs and –potential- innovators: business plan, coaching, finding financial resources, project management methods, etc.

Networking (at different levels, horizontal-local, regional, institutional, etc.) has a crucial role as support system for most of the stages of the innovation processes


CONTENTS







DEFINITIONS SCOPE

“Any novel and useful solution to a social need or problem, better than existing approaches (sustainable, [balanced?], etc.) and for which the value created (benefits) accrues primarily to society as a whole rather that private individuals” (Stanford: Centre for Social Innovation)

Need for society to change as a prerequisite for solving problems: focus on changes in social relations, people’s behaviour, norms and values soc. inn. combined with Social empowerment and inclusion Social capital (cohesion and networks)

Europe 2020: social innovation in the sense of social inclusion programmes to promote social innovation for the most vulnerable (providing innovative education, training and employment opportunities for deprived communities [also territories?].

Social innovation: innovation of established processes in politics and governance: social innovation needs innovative governance (inclusion of non-traditional, marginalized actors, integrates various policy issues and centres on area-based development

Social innovation should invest in civil society, and community development and support collective action, self-governance and political empowerment

AGR. & RURAL DEVELOPMENT

Social Innovation: instrument of change and innovation

DEFINITIONS SCOPE

General agreement: social innovation is important for agricultural and rural development

However, what exactly it means? Three main interpretations Social mechanism of innovation Social responsibility of innovation Need for innovating society not neutral concept: reflect attitudes towards the functioning of society

Social innovation: more linked to rural development than agriculture as a singular economic activity [agriculture: very innovative in technology, farmers as scarcely social innovative?]

Social innovation: when identifying society’s need for more sustainable production methods necessity for collaboration and social learning scope of change needed for revitalizing –rural- society



Social innovation contributes to processes of social change and renewal (not only and analytical and academic concept, but a way to stressing the need for social and political change)

Social mechanism of innovation: innovation takes place within specific social and cultural contexts and networks of

social relations (social networks) new technologies and products also affect social relations, behaviour and attitudes innovations are socially, culturally and territorially embedded

Social responsibility of innovation: different focus Classic economic thinking: innovation ability to increase profit and encourage

economic development (still today it is often associated with new products and new technologies wishing to maximize profit).

Social innovation requires new – social – methods of innovation, characterized by processes of co-design or co-construction and collaboration with / within society.

Knowledge (and their exchange) is an important element of innovation: processes of social and creative learning that change perspectives and ways of looking at things, values and behaviour, and in doing so guide the development of socially acceptable and relevant products and processes.

DEFINITIONS SCOPE AGR. & RURAL DEVELOPMENT


social innovation as a complex and multidimensional concept used to indicate the social mechanisms, social objectives and/or societal scope of innovation. Social mechanisms: refer to the fat that development, diffusion and use of innovation

occur within the context of society and in interaction with social relations, practices and norms and values systems

Innovations have social impacts: winners losers => innovations should be “social”: socially acceptable, relevant and ethically approapriate

Socialising innovation methods Reorganizing innovation as social and collective learning process common

definition of problems; design and implementation of solutions

Social innovation as political element of change is different to what –social and/or political- changes are desirable (and what are not) by each group of actors or interest.

DEFINITIONS SCOPE AGR. & RURAL DEVELOPMENT



Agriculture: it predominates a conception as agricultural modernization technological innovations efficiency organizational innovations business innovation: new products, processes,

strategies, structure, etc. “social innovation”: responding to social needs in food safety and food

security Rural development: higher perception of need for social change

“social innovation” “social dimension” core element for innovation: engaging society in developing new solutions Three interpretations of social innovation in rural development

Social mechanisms – co-production of rural innovation Social objectives – responsiveness to market failure and unsatisfied social needs Social transformations – Changing –rural- society

DEFINITIONS SCOPE



Social mechanisms – co-production of rural innovation Traditional Agricultural Knowledge Systems (AKIS): extensionists transferring new

knowledge, products and / or technologies to farmers New systemic approaches: importance of social mechanisms during development

phase innovations born from collective and creative learning processes and the mutual exchange of knowledge innovations require social learning (=not as linear transfer of knowledge but a shared, social process: knowledge from different sources and types something new)

In this sense, social innovation: Is a collective and creative learning Mean new skills, products, practices, attitudes and values and social relations: ex. LEADER

Programme (territorial and participatory approach to rural development): Local capacity building Confidence, self-esteem, Collective identity Local and extra-local networks LEADER intends to create conditions for functioning social mechanisms of innovation

DEFINITIONS SCOPE



Social objectives – responsiveness to market failure and unsatisfied social needs Elements for a context

Unsatisfied social needs innovation of the agro-food system Externalities of agricultural modernization (and production oriented agricultural support

systems) Social and economic decline of rural areas Social responsibility producing in an adequate way (ex. animal welfare) adequate products

(food safety, organic, etc.)

this context reflects social innovation as socially responsible agri-rural innovation, but understood in two ways:

To meet social concerns (reduction of negative effects) through technology (efficiency, less energy demand, less pollution emissions, etc.)

To meet social concerns through more radical response: agri-food eco-economy and multifunctional and integrated development the critical –social- innovation mean a global change of agri-food system ([from productivism to local systems of ecological, economic and community development])

Not to maximize production at minimal cost but to develop new products and services (local, high quality food, nature conservation, rural tourism, etc.) it is an alternative way to meet –emerging- social needs.

DEFINITIONS SCOPE



Social transformations & changing –rural- society Elements for a context

In rural development and agriculture, social change is always present Changes in rural and urban lifestyles drive and demand innovations

Social change is also present through the crossing of rural-urban boundaries and re-establishment of their relationships and development of new attitudes and values (in rural as well as urban areas)

In this context, innovation processes may result in social change: social innovation is Desired outcome (revitalized society) Instrument and strategy to rescue rural societies through collective engagement

[in social change]

DEFINITIONS SCOPE



Social transformations & changing –rural- society Objective for rural – local development:

re-integrate rural societies that are perceived or in situation of marginalization weak rural areas needed to assure its survival and revitalization needs social fabric, social innovation

need to mobilize and educate population should become capable and willing to engage a re-create their society

Social innovation: refers to society as arena where changes take place need for society to change.

But, what change and what scope is envisioned?: ex. (Marsden, 2012) Social innovation as radically changing society and its systems of production and

consumption Reorganization and redefinition of agri-food economy need social innovation as

changes in relations of production and consumption, norms, values, behavior and the principles of agri-food governance.

DEFINITIONS SCOPE



Common elements General focus of all three interpretations is on

promoting social innovation as important motor of change: social mechanisms of change as part of the process.

society as the arena where change takes place as well as indicating the scope of desired and envisioned –societal- change. Social innovation may be used as argument and strategy for promoting different directions of change. Two different examples agricultural modernization & transitions towards sustainability. Social innovation new production

and consumption practices, guided by new attitudes and values multifunctional rural development. Social innovation instrumental function: innovators engage

citizens in their practices, so new products and processes better meet their expectations and needs

Social innovation presupposes a critical attitude and a search for social justice and the public good. Different question is what to change and how.

Independently how radical could be the proposed changes, social innovation is an essential instrument as well a process for a transition towards more sustainable patterns.

DEFINITIONS SCOPE


CONTENTS







Technological vs social dimension of innovations? Technological dimension & economic objectives national & top

down policies Social dimension & social objectives local & bottom up strategies

(territorial-rural sustainable development) Networking Social learning

Social dimension of innovation Social relations / social organization and organization of networks of

innovators Social values and norms –Economic & Social- objectives supporting innovations having social objectives, common good and public benefits

incorporated in innovations, and meeting social needs sustainability & rural/territorial development objectives.

SOCIAL DIMENSION

Social dimension of innovation and social capital

CONTRIBUTION AT DIFFERENT STAGES

LEARNING & KNOWLEDGE LOCAL DEVELOPMENT

Context for –social- innovations Entrepreneurs use to initiate

innovations, but they work and live in a social context which may foster or block innovations

Social context: Less tangible

Norms and values (non formal / formal) social capital

Willingness to cooperate Informal networks cooperation Global objectives strategy

Tangible & formal Internal / external cooperation

(formal structures) formal networks (associations, partnerships, etc.)

agreed strategy Social capital & social networks


Social capital is present in different ways in all different stages of innovation Detection of innovation Establishment of innovative projects and

making them work Facilitation learning and knowledge

processes Dissemination of innovation Social capital, innovation and local

development

Network –collective- dimension: Innovation as a result of cooperation at

different levels Local – non local Actors same / different sectors

Innovation is more difficult with weak horizontal (local-external) and/or vertical (local-external) networking

In all stages, innovation need networks (combining actors, sectors and areas)

SOCIAL DIMENSION


LEARNING & KNOWLEDGE LOCAL DEVELOPMENT

Social capital, networks and detection of innovations Many ideas and initiation of innovations emerge [or are adapted] at

local level, from local individuals and local networks Actors usually are organized in networks, as part of social capital.

Many different –formalized- groups of actors in rural areas (environmental, professional associations –agriculture-, cultural associations, rural tourism promoters, local retailers, etc.), but also many local and diverse networks have an informal nature.

Groups of actors tend to share values and goals a) within them; b) between groups of actors at the same territory; or between groups of actors in different territories and/or scales (local, regional, national, etc.).



SOCIAL DIMENSION LEARNING & KNOWLEDGE LOCAL DEVELOPMENT

Social capital, networks and detection of innovations Sharing values and goals and, eventually, having a formal -or even

informal- common strategy, actors work together –more than in an isolated way, or more effectively- and tend to identify commonproblems, opportunities and they look for solutions (ex. common marketing, exploration of new markets, adoption of quality label for rural tourism association).

As strong are local networks (and social capital) less difficultiesbringing or valuing local or regional resources for the initiation of innovative projects.

As strong and rooted in local society (embeddeness) are networks of actors (social capital) more potential synergies between actors, sectors and a more favorable environment for the initiation of innovations.




Social capital, networks and the establishment and functioning of innovative projects Bonding social capital: crucial as starting point for innovations.

Strong links high -horizontal and intra- cohesion between actors (innovators-adopters, promoters, other members of the social innovation system)

Bridging social capital: Crucial for the adoption, introduction or development of innovations access to

resources and opportunities (ex. new knowledge about innovations, funding, markets, etc.) in different areas / networks / groups of actors.

Starting point: should be a strong and cohesive initial network /group of actors (bonding social capital) Ex. successful bridging social capital: cooperation between sectors (ex. food chain) in the same territory as well as same sectors in two different territories.




Social capital, networks and dissemination of innovation Organized forms of social capital (associations, NGOs, producers’

organizations, retailers associations, public-private partnerships, etc.): important role supporting, lobbying and disseminating (through their networks) innovations.

Innovations spread better and faster within those organized forms of social capital: cohesive and highly efficiently structured networks

Organized interest groups can impede or foster developments (ex. environmental groups fostering protection in natural areas: impede tourist developments) and innovations (impede or foster wind parks, introduction of complementary or new practices for quality labels, etc.)




LEARNING & KNOWLEDGE

Social capital, networks and learning and knowledge processes for innovations Innovations are knowledge-intensive processes. New skills and/or

new knowledge is needed for innovations (relating both dimensions, technological and social-organizative).

Inefficiencies related to needed –new- knowledge and learning mechanisms may block innovations

Providing of scientific knowledge

Developing and formalizing tacit and local knowledge

Facilitating learning processes



SOCIAL DIMENSION LOCAL DEVELOPMENT

Social capital, networks and learning and knowledge processes for innovations As much efficient networking (internal & external, cohesion &

bridges) and organization, more effectively learning processes, knowledge exchange and introduction-development-consolidation of innovations [ex: farmers groups].

Crucial role of informal networks in the provision of knowledge (first stages of innovations or without sufficient scientific knowledge).

Engagement in networks increasing competitiveness of small businesses.





Social capital, networks and innovation and their contribution to local development Innovations: frequently rooted in local communities having socio-economic

development as global goal (not just individual benefits as unique reason why many entrepreneurs stay at rural areas and do not move to urban areas?: local embeddedness)

As much present and important is the participatory approach (bottom-up) and more cohesive and structured the local networks (higher social capital stock) deeper sense of commitment of entrepreneurs and promoters of ideas and projects with the local development (some of them, innovators).

Innovations crucial for territorial-local development

Contribution to creation or maintenance of business, jobs and/or incomes; diversification of the local economy; valorization of local resources, etc.

Global contribution to the competitiveness of the territory and a better positioning in the competitive “markets”





Social capital, networks and innovation and their contribution to local development Close positive relations social capital – innovations

Interactions social capital – innovations, and their impact on local development: much higher in a territorial (bottom-up) approach than in the traditional and conventional vertical approach (top-down)

Key factors in territorial approach which largely depend on the stock of social capital at disposal of potential entrepreneurs and innovators : links between learning, knowledge and innovations Links between networking, participation and participatory skills, new skills, cooperation, self-

organization, active learning, etc.

Social capital (through mutual trust between actors, shared norms, ideas exchange and networking) stimulates learning creation or adoption of new knowledge emergence of ideas and innovation New ideas becoming –innovative- projects

social capital is present in all stages of creation and functioning of new –innovative- initiatives





Social capital, networks and innovation and their contribution to local development Close positive relations social capital & networks – innovations

Networking: dissemination of new ideas and innovative practices

Efficient organization of actors (formal / informal networks) and participation in broader networks higher dissemination and influence with respect to other actors, private, social or public (including public regional or national institutions, influencing policy levels and key decision makers)

Relationships in two ways:

Social capital crucial for innovations, but

innovations improvement of social capital: stimulating new interactions and creating new networks or extending existing ones, developing common understandings.





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Social capital and social networks: experiences from SNA in rural Spain (Andorra-S. Arcos, Bajo Martín, Teruel.Spain)

Private (economic) stakeholdersSocial stakeholders

Public stakeholders (elected + technical staff)

Public Stakeholders

Social Stakeholders

Private stakeholders

Private-Public S.

Private-Social S.

Social-Public S.One way linksTwo ways links

Size: direct relation with the degree of knowledge of the stakeholder

LEGEND

Andorra-Sierra de Arcos Bajo Martín


Ego and socio network of stakeholders. Links with external stakeholders (“linking” Social Capital)


CONTENTS







In the context of -strategies for- local development in rural areas & territorial (bottom-up) approach

1. Economic and technical approaches to innovations are not sufficient 2. Fostering innovations in such a context NEEDS take into account social

dimension3. Key elements fostering –social- innovations in territorial development:

1. Social innovations as instrument for change and renewal processes at local society

2. High stock of social capital: trust and social cohesion (common aspirations, values and norms)

3. Social capital & Networks: access to information & resources and channelfor innovation processes (related elements: social modernization, common values, commitment with territory, etc.)

4. Learning and knowledge as collective process 5. Governance: contribution to social capital and base for social innovations

and support systems

Concluding remarks: toward a key message

Social capital, social innovation, and networks approach in territorial development

2ND INTERNATIONAL WORKSHOP OF RUR@L INOV PROJECTRUR@L INOV INNOVATION IN RURAL AREASLISBON, 23 May 2013

Dr Javier ESPARCIA

[email protected]

THANKS FOR YOUR ATTENTION

mailto:[email protected]

social capital, social innovation, and networks approach in territorial...

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